What are THE DIFFERENCES BETWEEN FIXED AND VARIABLE ANNUITIES?

The differences between variable annuities and fixed annuities are significant. In a variable annuity, because your income or account value is based on the value of the stocks or bonds backing the annuity assets, the income and/or account values fluctuate. 

When you read or hear about annuities in the media, most of the time the subject is VARIABLE annuities NOT FIXED annuities. 

Unlike with fixed annuities, the variable annuity owner bears the investment risk . Therefore, variable annuities are considered investment securities and would be a “risk money place” for your money.

PLEASE NOTE: Variable Annuities ARE NOT CONSIDERED “Safe Money Products” because: 

• The owner of the annuity takes the investment risk. 
• You can lose the principal. 
• Gains and losses are tied to the stock market, which is out of the annuity owner’s control.

More Annuity Topics

Quick Overview

Fixed Rate Annuities

Fixed Index Annuities

Annuity Benefits

Fixed vs. Variable

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Resources

CONSUMER'S GUIDE:
​How to Generate Lifetime Income with Fixed Annuities

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More Income Topics

Fixed Annuities

Social Security

Savings Bonds

Banks and Credit Unions

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